Talks of Intel buying Altera send stocks soaring

​The San Jose, Calif.-based company produces CMOS-based programmable logic devices and related development software.

There have been a bevy of mergers and acquisitions this week in the tech market, but none would come close to what Intel has planned if latest reports are accurate.

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The processor maker is in talks to acquire Altera Corp., according to The Wall Street Journal on Friday.

The San Jose, Calif.-based company produces CMOS-based programmable logic devices and related development software.

With the news breaking just around the closing bell on Friday afternoon, stocks for both companies both went into a tizzy.

Intel stocks jumped by just over six percent in response to the WSJ story, while Altera skyrocketed by more than 21 percent -- the highest level Altera shares have seen since July 2011, according to MarketWatch.

Compare that to a pithy drop of 2.91 percent a few days ago, and it would appear shareholders are very keen on a merger with Intel.

Intel and Altera already have a history, becoming more amicable in 2013 when Intel's manufacturing processors became the foundation for Altera's then-latest 64-bit ARM chip.

It remains to be seen how Intel would make use of Altera's portfolio and technology, although Internet-of-Things is often top of mind for the tech giant these days.

Some of Intel's most recent purchases include Axxia's network chip business for $650 million in August 2014 and broadband and networking gear maker Lantiq this past February. Terms of the latter deal were not disclosed.

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